WEN vs. SHAK, CNNE, GRIL, DNKN, TXRH, EAT, CAKE, BLMN, PZZA, and JACK
Should you be buying Wendy's stock or one of its competitors? The main competitors of Wendy's include Shake Shack (SHAK), Cannae (CNNE), Muscle Maker (GRIL), Dunkin' Brands Group (DNKN), Texas Roadhouse (TXRH), Brinker International (EAT), Cheesecake Factory (CAKE), Bloomin' Brands (BLMN), Papa John's International (PZZA), and Jack in the Box (JACK).
Shake Shack (NYSE:SHAK) and Wendy's (NASDAQ:WEN) are both mid-cap retail/wholesale companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, valuation, community ranking, institutional ownership, analyst recommendations, earnings, profitability, media sentiment and dividends.
86.1% of Shake Shack shares are held by institutional investors. Comparatively, 86.0% of Wendy's shares are held by institutional investors. 9.7% of Shake Shack shares are held by company insiders. Comparatively, 17.1% of Wendy's shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Wendy's has higher revenue and earnings than Shake Shack. Wendy's is trading at a lower price-to-earnings ratio than Shake Shack, indicating that it is currently the more affordable of the two stocks.
Shake Shack has a beta of 1.78, suggesting that its share price is 78% more volatile than the S&P 500. Comparatively, Wendy's has a beta of 0.78, suggesting that its share price is 22% less volatile than the S&P 500.
Wendy's received 220 more outperform votes than Shake Shack when rated by MarketBeat users. Likewise, 64.69% of users gave Wendy's an outperform vote while only 51.78% of users gave Shake Shack an outperform vote.
Wendy's has a net margin of 9.44% compared to Wendy's' net margin of 2.08%. Shake Shack's return on equity of 62.68% beat Wendy's' return on equity.
Shake Shack presently has a consensus target price of $98.35, indicating a potential upside of 2.70%. Wendy's has a consensus target price of $22.06, indicating a potential upside of 25.46%. Given Shake Shack's higher possible upside, analysts plainly believe Wendy's is more favorable than Shake Shack.
In the previous week, Wendy's had 20 more articles in the media than Shake Shack. MarketBeat recorded 27 mentions for Wendy's and 7 mentions for Shake Shack. Shake Shack's average media sentiment score of 0.45 beat Wendy's' score of 0.38 indicating that Wendy's is being referred to more favorably in the news media.
Summary
Wendy's beats Shake Shack on 12 of the 19 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding WEN and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NASDAQ and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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